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CORPORATE STRATEGIC - JAKARTA. Tony Wenas, the President Director of PT Freeport Indonesia (PTFI), has stated that the ongoing discussions regarding the Indonesian government's increased stake in Freeport are still in progress and will require more time.
"This process involves bureaucratic and administrative procedures, and the revision of Government Regulation (PP) 96 is also necessary. All of these steps take time, but hopefully, they can be resolved," Wenas said in Jakarta, as quoted by Antara on Thursday (April 10, 2024).
Wenas explained that the increase in shares necessitates a revision of Government Regulation (PP) No. 96 of 2021 on the Implementation of Mineral and Coal Mining Business Activities.
The Indonesian government aims to increase its share ownership in PT Freeport Indonesia from 51% to 61%.
According to Wenas, all parties have a mutual understanding regarding the government's increased stake in Freeport. However, he declined to comment on the extension of Freeport's Special Mining Business License (IUPK). "Please ask Mr. Bahlil about the issuance of the IUPK," he said.
He stated that there have been no activities related to the discussion of the Indonesian government's increased stake in Freeport over the past week.
"There has been virtually no activity this week," he said.
PTFI's IUPK will expire in 2041. PTFI has applied for a contract extension to operate beyond 2041, but it has not yet been confirmed due to several considerations.
One of the conditions requested of PTFI is to increase the government's share ownership in the mining company by 10%, or to 61%. Wenas stated that this requirement is still under discussion.
In addition, the construction of a new smelter is also mentioned as a requirement. PTFI needs certainty about the contract extension as soon as possible in order to explore the mine.
According to Wenas, it takes up to 15 years to build a mine. Previously, Indonesian President Joko Widodo targeted the negotiation of the government's 61% stake in PT Freeport Indonesia to be completed by June 2024.
"The regulation needs to be finalized first before the negotiation can be concluded, but I am aiming to finish it before June. As soon as possible. If possible, no later than June," said President Jokowi after attending the opening of the 12th HikmahBudhi Congress in Jakarta on Thursday (March 28, 2024).
Jokowi is confident that a 61% share ownership can be realized after negotiations with PT Freeport Indonesia reach an agreement.
Furthermore, the government is also finalizing the Revision of Government Regulation (PP) No. 96 of 2021 on the Implementation of Mineral and Coal Mining Business Activities.
This article was originally published on Kompas.com under the title "Freeport Responds to Jokowi's Demand for Indonesia to Control 61 Percent of Shares"
